Bleed area Your work area
BUDGETING BASICS
IMPROVE YOUR RESUME
BY TEENS FOR TEENS
COLLEGE CHOICE
WORK YOUR NETWORK
WINTER 2011
$
2 0 $ N
TO WI
COUCH POTATO
REVOLUTION! PAGE 7
RECKLESS
RECORDS PAGE 7 UNDOCUMENTED BUT UNDAUNTED PAGE 13
K PAGE
BAC E E S
THE BIG PAYBACK
CITY YEAR
PAGE 14
WANNA BE A
BILLIONAIRE? PAGE 12
WHO DO YOU
SUPPORT
FOR MAYOR?
PAGE 14
LETTER FROM THE EDITOR Fellow readers, As we’ve come to this school year’s second publication, the contributors of On The Money are excited to have arrived at the issue, “Money Madness.” While sports enthusiasts commonly associate the month of March with the NCAA’s tournaments, everyone at On the Money would love to expand on that custom of watching basketball. Although shooting hoops is another conventional March pastime, why not explore possibilities beyond sports and start a new tradition pertaining to your economic goals? Applying for a job? Check out our tips on writing a resume on page 9. Interested in internet movies? Find out what you might be missing on page 8. Not sure what is going on with the election? Get the scoop on all the candidates on page 14. We hope that you take notice of some of our own suggestions in this issue! Happy reading,
Klaudia Bednarczyk
Letter from the City Treasurer of Chicago
CONTENTS Unknown Careers: A Look at Economists
Money Smart Week Events Meet the City Treasurer of Chicago
One Woman’s Journey to the Top A Little Low on Cash? Budgeting Basics Economic Basics
The Big Payback: City Year
College Choice No Resume Necessary: Alternative Teen Jobs Wanna Be a Billionaire? Undocumented But Undaunted
Budget, Save, Donate Couch Potato Revolution: Online Movies & TV Reckless Records: A Break from Music Downloads Spruce Up Your Resume
Work Your Network
21 ON ON THE THE MONEY MONEY
WINTER 2011 2010 FALL/WINTER
Our Mayoral Election: Who Do You Support?
Americans with Disabilities Act Take the Young Illinois Saves Challenge In the Know
Interns Klaudia Bednarczyk, Senior, Francis W. Parker School, Editor Kiara Hardin, Senior, Marist High School, Art/Web Editor Maribel Arellano, Freshman, University of Illinois at Chicago (Gage Park High School Graduate) Jackson Beard, Sophomore, Walter Payton College Prep Justin Banda, Senior, Homeschooled Kamal Bilal, Freshman, Whitney Young Kellin Dixon, Senior, Hales Franciscan Janet Garcia, Junior, Walter Payton College Prep Brianna Garrett, 8th Grade, South Loop Elementary Jasmine Gilliam, Senior, Walter Payton College Prep Stephanie Greene, Sophomore, Walter Payton College Prep Cedric Hakeem, Senior, Urban Prep K’lex Hilton, Senior, King College Prep Jordyn Holman, Junior, Walter Payton College Prep Andrea Johnson, Sophomore, Walter Payton College Prep Jada Jones, Sophomore, Walter Payton College Prep Skyler Lemons, Freshman, Kenwood Academy Bria Pollard, Sophomore, King College Prep Sophia Vela, Senior, Chicago High School for Agricultural Sciences Mariah Wachtman, Senior, Lakeview Academy On The Money Volunteer Writing Coaches Elizabeth Thompson (Coordinator) Danny Byrne Ryan Dolan Brian Frizzell Curtis Krumreich Teresa Lwin Sarah McGinnis Robby Schoder Jack Tench Layout & Design Jason Lips Lizzie Callen About On The Money On The Money magazine is written by teens for other teens. On The Money covers business, finance, credit, saving and more...providing realworld experiences and resources that can help students learn to meet their money and career goals. On The Money is provided by the Economic Awareness Council through collaboration with True Star Magazine, the Office of the City Treasurer of Chicago, Stephanie D. Neely and the Chicago Public Library. About the Economic Awareness Council The Economic Awareness Council is a financial education non-profit organization that services over 9,000 individuals each year with programming for students and families. On The Money Magazine would like to thank HSBC North America and the Charter One Foundation for their sponsorship of this issue.
LETTER FROM STEPHANIE D. NEELY, TREASURER The last week in February is America Saves Week. This is a perfect time for young people to start thinking seriously about how they relate to money. Do you earn some extra cash from baby-sitting or yard work? Do you spend it all at once? Or do you set aside a little bit each time and watch your savings grow? Turning a little money into a lot of money is one of the most satisfying and empowering things that a young person can do. Please take some time to set a personal savings goal for yourself, and take the Young Illinois Saves Challenge. It is a lesson that will shape your life, and the seed that can make your dreams grow. Learn more at Savespendgrow.org, YoungIllinoisSaves.org and AmericaSavesWeek.org. Remember, it’s your money, your choice. Stephanie Neely Chicago City Treasurer
MONEY SMART WEEK EVENTS Check out these Money Smart Week programs for middle school, high school and college students! Go Green: Making Money Grow with Green Solutions! Museum of Science & Industry, 57th & Lakeshore Dr., Chicago 4/2 – 4/9 10am to 1pm (M – Sa); 11am – 2pm Sun Want to save money & help the earth? Learn about the economics of going green in this activity booth. Try green technologies & learn what you’d save. Standard museum admission rates apply. Offering is free with museum admission. Harris Bank, Museum of Science & Industry, Economic Awareness Council, Office of the City Treasurer of Chicago, Peggy Notebaert Nature Museum College Smart Fair Wednesday 4/6 9am - 4pm James R. Thompson Center 100 W. Randolph Street, Chicago Learn about managing your money in college and obtaining financial aid for college from student financial aid and student account representatives from Illinois colleges, universities and community colleges as well as from college student ambassadors. Illinois Student Assistance Commission (Young Illinois Saves/On the Money Magazine will have panel & booth) Careers in Business Panel with On the Money Magazine Tuesday 4/5 5:30pm – 7pm Harold Washington Library Center Lower Level 400 S. State St., Chicago Interested in a career in business? Interns lead a panel of business professionals as they discuss careers in accounting, consulting & banking. HSBC North America, Chicago Public Library, On the Money Magazine, Illinois CPA Society, Financial Planning Association of Illinois, Economic Awareness Council, Office of the City Treasurer of Chicago, True Star Magazine
In support of Money Smart Week 2011, HSBC, together with the YWCA of Metro Chicago will offer financial literacy workshops and/or panel discussions at three of the YWCA’s Chicagoland locations – Laura Parks and Mildred Francis Center, Patterson McDaniel Family Center and the West Side Center. Food and give a ways will be provided at each of these events free of charge as well as a chance to win great raffle prizes, i.e. I-Pads, I-Pods, Laptops Saturday, April 2 Financial Survival: Small-Scale Investment and Homeownership Laura Parks and Mildred Francis Center 9:30 a.m. – 12:00 p.m. Tuesday, April 5 Financial Survival Lunch and Learn: Identity Theft and Credit Basics Laura Parks and Mildred Francis Center 12:00 p.m. – 1:30 p.m. Wednesday, April 6 Financial Survival Lunch and Learn: Identity Theft and Credit Basics Patterson and McDaniel Family Center 12:00 p.m. – 1:30 p.m. Thursday, April 7 Financial Survival: Understanding Your Financial Foundation and Borrowing Basics (Bilingual) West Side Center 12:00 p.m. – 1:30 p.m. Financial Survival: Planning for Death, Divorce or Financial Devastation (Bilingual) Patterson and McDaniel Family Center 5:30 – 7:00 p.m. Saturday, April 9 Financial Survival Lunch and Learn: Identity Theft and Credit Basics (Bilingual) West Side Center
163
One Woman’s Journey To The Top Meet the City Treasurer of Chicago by JORDYN HOLMAN, Junior, Walter Payton College Prep
By MARIAH WACHTMAN, Senior, Lakeview Academy
Stephanie Neely’s journey to becoming City Treasurer is very inspirational to all teenagers aspiring to work in corporate America. From an early age, Treasurer Neely’s father taught her to be financially savvy by telling her “not to spend more than you have.” Throughout her life, she lived by this principle. As a teenager she grew up on the southside of Chicago while attending the University of Chicago Lab School. Upon graduating from high school, she attended the prestigious Smith College in Massachusetts where she majored in pre-med. After taking a summer economics course, however, she decided to alter her coursework to focus on finance. She earned an MBA in Economics with a concentration in Finance from University of Chicago. Shortly after, she interned at Smith Barney, and later became a Vice President at Northern Trust.
My eyes wandered around the office when suddenly they focused in on a framed magazine cover. On the front was a stunning photo of Stephanie Neely rocking a pink trench coat and an exuberant smile. At the top of the cover it was labeled TCW, unfamiliar with the acronym but captivated by the cover, I asked Stephanie, “Were you a model?” She modestly laughed and said that it is an issue of Today’s Chicago Woman, a magazine that showcases high-achieving female professionals. Other than being featured in one of Chicago’s top magazines, her role model qualities are best illustrated through her work, inspiring and engaging Chicago financially as the City Treasurer.
In 2006, she became the City Treasurer of Chicago under Mayor Daley and has used the platform to pass on her father’s advice about being money smart to the rest of the city. Neely warns teenagers about being careless with credit cards and recommends that high school students participate in internships. She has experienced success throughout her career by remaining diligent and focused on her goals. Her path to becoming one of the highest elected officials in Chicago is evidence to every teenager that it is never too late to change one’s path and still accomplish many life goals as long as one is dedicated to taking advantage of the opportunities that come their way.
On the Money Interns Meet the Chicago City Treasurer
As City Treasurer, Neely’s job is to protect and manage the city’s money and investments. She also manages the city’s liquidity, otherwise known as the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Overall, she invests $7 billion in assets and, while in office, she has earned about $500 million dollars for the city. Ultimately, the City Treasurer’s office’s main objectives for the city’s money are safety, protecting principal, liquidity, and making sure Chicagoans get the best return for their money. Stephanie Neely has a warm heart for helping the city, and she hosts events for all ages to learn about saving, spending, and investing. She maintains programs within the city that promote financial literacy to Chicagoans and continues to support small businesses through events, such as the annual Small Business Expo. Her newest project “Save it, Spend it, and Grow it” is designed to give people the tools to make smart financial choices and prevent over-spending. This resource can be found on her website
www.savespendgrow.org.
I never realized how many different things the City Treasurer was involved with!
http://www.savespendgrow.org/
4 ON THE MONEY
WINTER 2011
A Little Low On Cash? by CEDRIC HAKEEM, Senior, Urban Prep
A BUDGET!! One of the most important things you’ll ever come across in life. Without a stable budget you are doomed for pockets with no money, bank accounts with nothing to withdraw and credit cards with unimaginable debt. To avoid this when money is tight, your budget must be impeccable. You must know where every penny is going when it leaves your pockets. Budgeting is very simple, but not often used. As a result, about 56% of Americans are in some type of debt. It is very scary to know that in our enormous country over half of the people are in debt. Do not let the number scare you though. We are the new generation. We can take budgeting and perfect it. By the time we are adults, we will have enough money to reach our money goals. Here’s the big question: How do you make a budget? I interviewed numerous adults asking them this very question, and I received different answers from each. However, what I pulled out from all the adults was a simple sentence, “Keep some, spend some, save some.” This means whenever you receive money from anywhere you immediately save some of it (at least 10%) so that you never go broke; then keep
56%
some in your pockets so you have money to spend later; and of course you can spend some. This cycle makes managing money so much easier, because it ensures that you always have money. If this doesn’t work, there are numerous alternatives. For example, you can download charts and graphs from the internet to keep up with your money. Or, there’s the old fashioned way; getting a pencil, notebook, calculator, and keeping track of your expenses manually. It will benefit you to budget your money. You’ll be surprised at the results.
of Americans
are in debt
Try it yourself! Check out the Budget Builder at
www.YoungIllinoisSaves.org.
Keep some, spend some, save some.
Your Voice On Savings How many teens save money? How much do they save? These questions and more were answered by you, our teen readers, by responding to our latest survey. Also, congratulations to Bria, the winner of our $20 random drawing for responding to the survey.
AVERAGE SAVING GOAL $1,040
Be sure to take this issue’s survey at http://www.otmsurvey.com for another chance to win $20. Have you ever set a savings goal?
YES 83%
NO 17%
Do you have a checking account?
YES 37%
NO 63%
AVERAGE AMOUNT SAVED $721 (70%)
Teens said they were saving for many different things, but common goals were to save for iPods, cell phones, college, and travel.
5
Budget, Save, Donate
B
FE
22
by ANDREA JOHNSON, Sophomore, Walter Payton College Prep
While perusing the internet one day, I came across Carlo Garcias’ blog (livingphilanthropic. tumblr.com) and was inspired by his dedication to giving back. On April 22nd, 2010 Carlo began his “365 Charities in 365 Days” project, in which he planned to give money to a different charity every day until April 22nd, 2011. So far, he has given over $3,000 to various charities. Other people have taken up his cause, as well, and have donated over $7,000 altogether. Carlo is from the South Side of Chicago and admits that he doesn’t come from money. He is an employee of Ticketweb, and donates $5-$30 a day to a charity of his choice. In or-
der to afford this, Carlo gave up buying new clothes and his daily Starbucks habit, according to Timeout Chicago. When asked about the source of his donations, he answered “I’ve actually had to take a look at my spending to find a way to move funds away from unnecessary expenses and gave that budgeted money to charity.” Depending on how much time (or money) you may have, if you save 50 cents a day for an entire year, you could donate over $180.00 to charity by the end of the year. If you would like to donate to a charity, set a specific goal and save money everyday or every week. Cut back on the purchases you want but may not necessarily need. You will meet your goal in no time. You would be surprised you at how much money you can use to affect someone’s life in a positive way.
Economic Basics: What is Opportunity Cost? by KLAUDIA BEDNARCZYK, Senior, Francis W. Parker School, Editor
We hear the term economics on a daily basis while conversing with friends and family. Oddly enough, we turn on the TV and once again hear the word being tossed around by the media. Dubbed a dismal science and often thought of as boring, economics is defined by production, consumption, and movement of wealth. While we are exposed to it in countless ways, the subject is frequently mentioned and further complicated by other seemingly foreign economic terms. It obviously seems to be significant, but what does it have to do with us? One of the most basic economic terms that is frequently used is opportunity cost. It can be described as the dilemma that one faces whenever given different alternatives that imply potential gains or losses. This simply means you have a choice and choice has both positive and negative aspects and consequences. Its meaning is rather simple and therefore can be applied to any situation. For example, in the case of whether to work or go to college, would it be bet-
ter to take on a job, but sacrifice free time? What are some ways you could have taken advantage of the time while you’re at work so that your earnings are bigger? A college education at a private school can range from $40,000- over $50,000, while a community college a mere fraction of the cost. Is the difference in the education and resources enough for you to make the financial sacrifices? In each of these choices (to go to college or to work – to go to a private college or to save money) you are taking one option and giving up a second choice. This choice you have given up is your opportunity cost. While we’re exposed to various terminologies (like opportunity cost), we often don’t understand the root definition. The wording throws us off and seems to take on a foreign connotation. Once we, however, fully grasp the definition we’re able to apply it to our own daily situations. Ultimately, this can help us to make better choices.
Learn more about economics on these sites & check out the article on the career of being an Economist on page 10! http://www.econcouncil.org/kids.html http://www.socialstudiesforkids.com/subjects/economicsbasic.htm http://www2.scholastic.com/browse/collection.jsp?id=455 http://www.pppst.com/economics.html http://www.genirevolution.org/ http://www.practicalmoneyskills.com/ games/trainingcamp/ http://studentcenter.ja.org/Pages/default. aspx http://www.fdic.gov/about/learn/learning/ index.html http://www.federalreserve.gov/kids/default.htm http://www.ssa.gov/kids/kids.htm http://www.bls.gov/k12/social01.htm
If you until retire, you save save just just $7.50 $7 perper dayday until youyou retire, youyou willwill be be aamillionaire! a 7.5% APR from age to 65.) millionaire!(Assumes (Assumes an 8% APR from age 16 16 to 65.)
Start small. Think Big.
Join the Young Illinois Saves movement today! saving information, prize drawings and savings accounts with no fees.
6 ON THE MONEY
WINTER 2011
Made Made possible possiblethrough throughthe the generous support generous supportofofthe the
State Farm InsuranceFoundation Companies ® Bank of America
A B REAK F
RECKL
O
WN
RO
ORLDOASDS
R S S E M MUSIC DEC
by JANET GARCIA, Junior, Walter Payton College Prep
Today we, as young adults, often find ourselves humored and horrified by the eight-tracks and vinyls our parents had to endure. We picture them riffling through shoddy record bins; overpriced & oversized. Today’s consumers don’t have their patience. They want it here and they want it now. We’re all about marketing and mass production. But, we may have swapped convenience for quality. We find ourselves basking in the instantaneous satisfaction to our musical craving. But, what we fail to realize is, we’re often paying more for less. Paying $9.99 for a downloaded album? That’s the fact of the matter. But much like the independent books stores that surpass the mainstream Borders and Barnes & Noble. Reckless Records is Chicago’s escape from the mundane virtual music store. While perusing Reckless I was overwhelmed, I stood in front of every album ever released by Bright Eyes and a wall filled with new releases. Tee shirts, mugs, buttons, pins, vinyls and CDs. It’s a music lover’s sanctuary. From personality to price, Reckless Records has it all. I found new albums that ranged from $2.99 to $14 dollars. But, most albums are used and are priced at about $5.99-$7.99. Having music equipped with a case, the hardcopy of the CD, the album artwork & the lyrics beats going to a playlist labeled “purchased” for me. And, with all the choices of indie rock, I don’t worry too much about choosing the wrong CD, though on iTunes I often fear clicking “add to cart” while lazily “shopping” and Facebook chatting.
COUCH POTATO
REVOLUTION
by JUSTIN BANDA. Senior, Homeschooled
Movies and TV shows have evolved to the point where one can access them anywhere, anytime. Variety is the zeitgeist, and the days of $5 rentals at Blockbuster are over. Missed an episode of “Glee” or “House”? Go to Hulu. “In Mandarin, Hulu has [an] interesting meaning,” explains Hulu’s blog. “In ancient times, the Hulu was hollowed out and used to hold precious things.” Hulu allows anyone to watch the latest episodes of their favorite shows. Both free and $10-a-month subscriptions are offered, and the company’s profitability has soared since it introduced the for-pay version in October. But Hulu lacks one vital media: movies. Netflix, a subscription program, offers thousands of films for varying subscription rates (the cheapest is $7.99 a month). Although some studios withhold their latest movies for a thirty-day period to drive sales, Netflix offers the largest disc-exchange library available. Netflix enforces a ‘throttling’ policy which moves over-consumers to the back of a queue. This policy increased the company’s revenue and customer base. However, there’s always iTunes, a free, award-winning multimedia center. Apple’s popular software offers the latest from major studios, and lets you rent or buy standard- or high-definition versions of movies. Downloads aren’t speedy, but the films are yours forever. While the iTunes Store itself makes less revenue than Hulu or Netflix, sales made at the store drive consumer demand for products on which to watch films, like the iPhone or iPad (which Apple directly profits from). The days of going to your local video store and paying super inflated prices are over. There are better options for the couch potato these days—you just have to know where to look.
In the midst of this downloading frenzy, Reckless Records provides us with a long overdue dose of substance.
7
SPRUCE 3
UP YOUR RESUME
by SOPHIA VELA, Senior, Chicago High School for Agricultural Sciences
Whether you plan on flipping burgers or working in a corporate office, there comes a time in one’s life when a resume becomes a necessary tool in nailing an interview. Before starting your resume, it is important to gather all the important dates of your previous employment and education. Also, remind yourself of all prior certifications and skills involving any software programs, etc. that will be valuable to any prospective employer. After you have made a list of these items, begin to compile them in this order.
1 2
The first section of your resume should highlight any technical skills, training, degrees and your grade point average that might set you apart from the crowd. Use words that are relevant to the position you are seeking, giving yourself credit for knowledge required in your relative field. The second section of your resume will cover prior work experience and volunteer service, stating what you did and learned.
8 ON THE MONEY
WINTER 2011
Then a small list of references from your previous work and service experience will conclude the third section of your resume. Always remember to ask for permission before listing a contact. “Typically, resumes should fill one page only however there are times when you may be asked for a more complete list of experiences,” said former On the Money coach and Program Assistant at the NYU Wasserman Center for Career Development, Desalina Allen.
Here are some tips to remember when building your resume: • Remember to keep the information brief, using bullet points. • Use action verbs and words that stand out. • Make sure your resume is consistent and targets the type of job you are seeking. • It is better to start with the most relevant position held, also elaborate on any details like how you helped your employer succeed in accomplishing a goal. • Keep all facts true and give dates that are accurate. Brag about yourself. This is your time to sell yourself. • Make sure to list all relevant (or related) employers and any awards and special achievements earned.
With this in mind, run spell check and also check your grammar. No mistakes are allowed on a resume; it is a bad first impression! In a recent study by CareerBuilder.com, 71 percent of hiring managers’ preferred a resume customized for the open position. Employers love to see how they would benefit from hiring you because it is reassuring that their business is safe in your hands. Each resume is different because it reflects who you are as a dependable worker.
9
10 ON THE MONEY
WINTER 2011
11
12 ON THE MONEY
WINTER 2011
1 ON THE MONEY
FALL/WINTER 2010
13
14 THEMONEY MONEY FALL/WINTER WINTER 20112010 1 ONONTHE
1 ON THE MONEY
FALL/WINTER 2010
15
Go to YoungIllinoisSaves.org for more saving strategies!
Or Enroll Now: YoungIllinoisSaves.org Visit COM Y. URVE r S M T O e ou to tak rt Survey a to y Sm Mone e entered b and win
$20
Billion Million
WORD BANK
Undocumented Disabilities Debt
1) City Treasurer, Stephanie Neely, has earned over $500 _ _ _ _ _ _ _ dollars for the city in her time as Treasurer. 2) There are 65,000 _ _ _ _ _ _ _ _ _ _ _ _ students that graduate from US high schools each year. 3) The _ _ _ _ _ _ _ _ _ with Disabilities Act is intended to ensure the protection of those with disabilities. 4) The City Treasurer manages assets worth of $7 _ _ _ _ _ _ _ dollars. 5) 56% of Americans are in _ _ _ _.
Intern with On The Money
Do you like to write or have an interest in money or business? Do you want to make some extra cash and build your resume? Contact On The Money to learn more about our internship program and possible openings. Email us at otm@ecocouncil.org
16 ON THE MONEY
WINTER 2011